Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents
This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.
|Date of creation:||Aug 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501|
Web page: http://www.kier.kyoto-u.ac.jp/eng/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J.S. Eades, 2005. "East Asia," Chapters, in: A Handbook of Economic Anthropology, chapter 34 Edward Elgar Publishing.
- Keller, Wolfgang, 2002.
"International Technology Diffusion,"
CEPR Discussion Papers
3133, C.E.P.R. Discussion Papers.
- Huilin Lin & Ryh-Song Yeh, 2005. "The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1789-1799.
- Hu, Mei-Chih & Mathews, John A., 2005. "National innovative capacity in East Asia," Research Policy, Elsevier, vol. 34(9), pages 1322-1349, November.
- Aggarwal, Aradhna, 2004. "Macro Economic Determinants of Antidumping: A Comparative Analysis of Developed and Developing Countries," World Development, Elsevier, vol. 32(6), pages 1043-1057, June.
- Hui-Lin Lin & Ryh-song Yeh & Ching-Fan Chung, 2009. "The effect of outward investment to China on domestic R&D: a two-hurdle model with endogenous ODI," Applied Economics, Taylor & Francis Journals, vol. 41(9), pages 1191-1198.
- Roper, Stephen & Love, James H., 2002. "Innovation and export performance: evidence from the UK and German manufacturing plants," Research Policy, Elsevier, vol. 31(7), pages 1087-1102, September.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Bruno Van Pottelsberghe & Frank Lichtenberg, 2001.
"Does foreign direct investment transfer technology across borders?,"
ULB Institutional Repository
2013/6221, ULB -- Universite Libre de Bruxelles.
- Bruno Van Pottelsberghe De La Potterie & Frank Lichtenberg, 2001. "Does Foreign Direct Investment Transfer Technology Across Borders?," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 490-497, August.
- Bertrand, Olivier & Zuniga, Pluvia, 2006.
"R&D and M&A: Are cross-border M&A different? An investigation on OECD countries,"
International Journal of Industrial Organization,
Elsevier, vol. 24(2), pages 401-423, March.
- Olivier Bertrand & Pluvia Zuniga, 2004. "R&D and M&A : Are cross-border M&A different ? An investigation on OECD countries," Cahiers de la Maison des Sciences Economiques bla04072, Université Panthéon-Sorbonne (Paris 1).
- Jerry A. Hausman & Bronwyn H. Hall & Zvi Griliches, 1984.
"Econometric Models for Count Data with an Application to the Patents-R&D Relationship,"
NBER Technical Working Papers
0017, National Bureau of Economic Research, Inc.
- Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
- Wolfgang Keller, 1997.
"Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners,"
NBER Working Papers
6065, National Bureau of Economic Research, Inc.
- Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September.
- Wolfgang Keller, 1996. "Are International R&D Spillovers Trade-related? Analyzing Spillovers among Randomly Matched Trade Partners," International Trade 9608002, EconWPA.
- Keller, W., 1996. "Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners," Working papers 9607, Wisconsin Madison - Social Systems.
- Mancusi, Maria Luisa, 2008. "International spillovers and absorptive capacity: A cross-country cross-sector analysis based on patents and citations," Journal of International Economics, Elsevier, vol. 76(2), pages 155-165, December.
- Deolalikar, Anil B & Evenson, Robert E, 1989.
"Technology Production and Technology Purchase in Indian Industry: An Econometric Analysis,"
The Review of Economics and Statistics,
MIT Press, vol. 71(4), pages 689-92, November.
- Deolalikar, A.B. & Evenson, R.E., 1988. "Technology Production And Technology Purchase In Indian Industry: An Econometric Analysis," Papers 556, Yale - Economic Growth Center.
- Adrian Gourlay & Jonathan Seaton & Joy Suppakitjarak, 2005. "The determinants of export behaviour in UK service firms," The Service Industries Journal, Taylor & Francis Journals, vol. 25(7), pages 879-889, October.
- Tomiura, Eiichi, 2007. "Effects of R&D and networking on the export decision of Japanese firms," Research Policy, Elsevier, vol. 36(5), pages 758-767, June.
- M. V. Posner, 1961. "International Trade And Technical Change," Oxford Economic Papers, Oxford University Press, vol. 13(3), pages 323-341.
- W. Kip Viscusi & Joni Hersch, 2009.
"Tobacco Regulation through Litigation: The Master Settlement Agreement,"
NBER Working Papers
15422, National Bureau of Economic Research, Inc.
- W. Kip Viscusi & Joni Hersch, 2010. "Tobacco Regulation through Litigation: The Master Settlement Agreement," NBER Chapters, in: Regulation vs. Litigation: Perspectives from Economics and Law, pages 71-101 National Bureau of Economic Research, Inc.
- A. Gourlay & J. Seaton, 2004. "Explaining the decision to export: evidence from UK firms," Applied Economics Letters, Taylor & Francis Journals, vol. 11(3), pages 153-158.
- Knut Blind & Andre Jungmittag, 2004. "Foreign Direct Investment, Imports and Innovations in the Service Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 25(2), pages 205-227, 06.
- Girma, Sourafel & Gong, Yundan & Görg, Holger, 2009. "What Determines Innovation Activity in Chinese State-owned Enterprises? The Role of Foreign Direct Investment," World Development, Elsevier, vol. 37(4), pages 866-873, April.
- Richard Kneller, 2005. "Frontier Technology, Absorptive Capacity and Distance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 1-23, 02.
- Stephen Roper & James H. Love & Dolores Añon Hígon, 2006. "The Determinants Of Export Performance: Evidence For Manufacturing Plants In Ireland And Northern Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(5), pages 586-615, November.
- Chih-Hai Yang & Jong-Rong Chen & Wen-Bin Chuang, 2004. "Technology and Export Decision," Small Business Economics, Springer, vol. 22(5), pages 349-364, 06.
- Liu, Xiaohui & Zou, Huan, 2008. "The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries," Journal of World Business, Elsevier, vol. 43(3), pages 352-364, July.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Madsen, Jakob B., 2007. "Technology spillover through trade and TFP convergence: 135 years of evidence for the OECD countries," Journal of International Economics, Elsevier, vol. 72(2), pages 464-480, July.
- Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Branstetter, Lee, 2006. "Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan's FDI in the United States," Journal of International Economics, Elsevier, vol. 68(2), pages 325-344, March.
- Bassanini, Andrea & Scarpetta, Stefano, 2002. "Does human capital matter for growth in OECD countries? A pooled mean-group approach," Economics Letters, Elsevier, vol. 74(3), pages 399-405, February.
- Yoo-Jin Han & Won-Young Lee, 2007. "The Effects Of The Characteristics Of Korean Firms On The Patent Production Function," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(4), pages 293-301.
- Paul Geroski & Steve Machin & John Van Reenen, 1993. "The Profitability of Innovating Firms," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 198-211, Summer.
When requesting a correction, please mention this item's handle: RePEc:kyo:wpaper:721. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ryo Okui)
If references are entirely missing, you can add them using this form.